Selling your home can be an extremely challenging process and this is especially true for first-time sellers. Most first-time sellers fail to recognize the amount of time one has to dedicate in order to successfully sell a home. On top of that, it’s is also an emotionally taxing process. Imagine having strangers come into your home, which you’ve grown to love over the years, and have them criticize it? This goes for both first-time and seasoned sellers. Selling your home will always be challenging and one simple mistake can make or break a deal.
However, this process can be a lot easier if you are aware of the common mistakes and pitfalls most homeowners encounter when trying to sell their homes. Once you are able to anticipate these problems and mistakes, you will be able to handle them better should you encounter them. In this article, we listed the common mistakes and pitfalls most homeowners encounter when selling a home. Read on to learn more.
Pitfall #1: Letting emotions get the best of them
As mentioned above, this process can get extremely emotional. For most homeowners, their home is their most prized possession. Other than the financial aspect, over some time, a home can hold a lot of memories that we’ve shared with the people that we love. It is not impossible that we are now emotionally attached to our home. When strangers begin to criticize your home, it can be rough. But again, just one wrong response can break a deal.
So how do you keep your emotions in check? There are two ways to go about this. The first option is to recall your experience when you were the buyer. Buying a home is just as stressful and exhausting as selling a home. This mindset will help you empathize with the prospects. The second option is to change your mindset. Once you have decided to sell your home, instead of thinking of yourself as the homeowner, switch your mindset to that of a businessperson. Treat it as a business transaction. This will help you stay rational throughout the process.
Pitfall #2: “For Sale By Owner” (FSBO)
Another pitfall most homeowners commit is opting to sell their own homes instead of hiring a real estate agent. Most homeowners choose to sell their own homes because they don’t want to pay an agent their fees and commissions. Although that may be true, what usually ends up happening is that these homeowners spend money as well trying to market their property. Hiring a great agent can save you from committing all of these mistakes.
On top of that, they know the market better. Their market and industry knowledge can allow you to sell your home faster. They know when a prospect is the right prospect or not. A great real estate agent is also the best mediator. You wouldn’t have to deal with as much emotional stress as the real estate agent becomes the rational party in the transaction.
Pitfall #3: Unrealistic Pricing
One of the most common pitfalls of homeowners is setting an unrealistic price for their home. In fact, if you were to ask real estate agents, most of them would tell you that overpricing your home is one of the biggest mistakes you can make when trying to sell your own home. If you have experience buying a home with an agent before, you would be familiar with a CMA or comparative market analysis. Chances are, your buyers will also be getting the CMA report from their agents.
Overpricing your home can easily break the deal. Most first-time sellers do not recognize the advantage of pricing your home on the lower end. Pricing your home on the lower end can attract more buyers. When there are a number of buyers, negotiations start. And when the negotiations start, you now have the upper hand. This, ideally, will lead to the price of your home increasing.
Pitfall #4: Skipping Major Repairs
Lastly, most homeowners tend to skip making major repairs to their homes before selling. They are not willing to spend extra money on making repairs in a home that they won’t be living in. Although on paper that makes sense, skipping on major repairs can actually have major repercussions as well. For one, this can easily turn off prospects. Imagine walking into a home and seeing that there are broken windows or heating systems. When you’re trying to sell your home, your goal is to make it the most presentable version that you can. Major repairs can also delay the sale of your home as buyers would be waiting on them to get fixed before moving on. On top of all that, having major issues with your home can give the buyers the upper hand when it comes to negotiating. This can ultimately lead them to ask for a lower price. Therefore, skipping on making the repairs will only cost you more in the long run.